"Well, he's really lost it now", is probably what you're thinking by reading that title. 7.2k? Am I nuts?
Luckily, the answer is no, although my username may say otherwise. I am a technical analyst by profession, and I believe anything is possible in crypto.
So which one comes first? 13k or 7.2k? Let's see, shall we?
The first option is very, very possible. 13k is basically around the corner. Bitcoin has flipped a downtrend line from 2017, and closed above it for two consecutive days. Equally, the weekly close from last week was super strong, breaking above short term resistance.
So what are the things we need to see BTC at 13k by next week?
- A weekly close above 10750. Notice I said WEEKLY. That means the Sunday close must be above 10750. With the power bulls currently have, I see that as a real possibility.
- A monthly close above 10500. The monthly close is coming soon, and it seems to be a strong one. Should BTC close above 10500 this month, it would mean it has essentially flipped that long term resistance point, and there's nothing but air on the chart till 13k.
All these things seem very feasible, and I like the odds we have. However, we can't rule out the bearish scenario. Let's see what made such an absurd number like 7.2k come to my head.
What are the things Bitcoin would need to do to plummet to it's doom at 7.2k?
- It would have to fail at completing the criteria I put above.
- There's a CME gap at sub 9.6k. CME gaps mostly get filled, but should this particular one get filled, it signifies a possible close below a support point. A close below support would be a bearish sign, and bears would have strength once again to possibly push prices down to the support at 8.6k, then 8k and then 7.2k.
I realise that this is a very crazy thing to think about, and it may never occur anyway. However, we can never completely rule out extreme bearish cases.
I hope you enjoyed this article. If you did, a like would be massively appreciated, as well as a follow.
Thanks for reading.